The House of Representatives has inched closer to creating a commission for the regulation of the rapidly growing fintech industry in Nigeria, as a bill for that purpose scaled second reading Tuesday.
Titled the Nigeria Fintech Regulatory Commission (Establishment) Bill, its sponsor, Hon. Fuad Kayode Laguda, while presenting its general principles, said the fintech industry has grown exponentially in recent years, with millions of Nigerians relying on digital payment platforms, mobile money services, and other fintech products for their financial transactions.
“However, the lack of clear regulatory framework has led to concerns about consumer protection, financial stability, and the prevention of financial crimes.
“Provide a clear regulatory framework for the fintech industry, ensuring that operators comply with established standards and guidelines.
“Protect consumers by ensuring that fintech companies operate fairly, transparently, and securely, promote innovation in the fintech sector, while minimizing risks to financial stability and security, and enhance collaboration between regulatory agencies, fintech companies, and other stakeholders to drive growth and development in the industry.”
He noted that the proposed legislation made provisions for functions of the commission to include licensing and registration of fintech companies, oversight and supervision of fintech companies to ensure compliance with regulatory requirements, enforcement of regulations and imposition of sanctions for non-compliance, and consumer protection and redress mechanisms.
“The establishment of the Nigeria Fintech Regulatory Commission will have numerous benefits for our economy and citizens, including: increased confidence in the fintech industry, driving growth and investment, improved consumer protection, reducing the risk of financial loss and promoting trust in digital financial services, enhanced financial stability, by ensuring that fintech companies operate in a safe and sound manner, and increased competition driving innovation and better services for consumers,” he said.
